Thoughtful Days and Valenced Nights: How Much Will You Think About the Problem?

Research investigating risk preference has pointed towards motivation and ability as important factors for determining the strength and likelihood of the framing effect. In the current study we explored the influence of individual differences in motivation and ability through circadian rhythm. We predicted that during circadian off-times participants would exhibit stronger framing effects whereas framing effects would be relatively weaker during on-times. Six-hundred and eighty five individuals took part in the study; the findings supported our hypothesis, revealing a diurnal pattern of risk responding that varies across the 24-hour circadian cycle. Key Words:

More Thought - More Framing Effects?

Three studies investigate the impact of the amount of elaboration on framing effects. In all three studies, participants were exposed to decision scenarios similar to the �Asian disease� problem (Tversky & Kahneman, 1981). The results replicated previous findings: Participants avoided the risky option when the scenario was framed in terms of gains, but preferred the risky option when the scenario was framed in terms of losses. Most importantly, these effects were most pronounced when participants spent more time working on the decision, because of either increased elaboration time (Study 1 and 2) or increased processing motivation (Study 3). Moreover, increased elaboration increased framing effects only when the situation required the scenario to be enriched with additional information. The discussion focuses on the possibility that increased elaboration may not necessarily result in less bias in social judgment and decision making.

More thought - more framing effects? : Framing effects as a function of elaboration

Three studies investigate the impact of the amount of elaboration on framing effects. In all three studies, participants were exposed to decision scenarios similar to the 'Asian disease' problem (Tversky & Kahneman, 1981). The results replicated previous findings: Participants avoided the risky option when the scenario was framed in terms of gains, but preferred the risky option when the scenario was framed in terms of losses. Most importantly, these effects were most pronounced when participants spent more time working on the decision, because of either increased elaboration time (Study 1 and 2) or increased processing motivation (Study 3). Moreover, increased elaboration increased framing effects only when the situation required the scenario to be enriched with additional information. The discussion focuses on the possibility that increased elaboration may not necessarily result in less bias in social judgment and decision making

Risk homeostasis in information security:challenges in confirming existence and verifying impact

The central premise behind risk homeostasis theory is that humans adapt their behaviors, based on external factors, to align with a personal risk tolerance level. In essence, this means that the safer or more secure they feel, the more likely it is that they will behave in a risky manner. If this effect exists, it serves to restrict the ability of risk mitigation techniques to effect improvements.The concept is hotly debated in the safety area. Some authors agree that the effect exists, but also point out that it is poorly understood and unreliably predicted. Other re-searchers consider the entire concept fallacious. It is important to gain clarity about whether the effect exists, and to gauge its impact if such evidence can indeed be found.In this paper we consider risk homeostasis in the context of information security. Similar to the safety area, information security could well be impaired if a risk homeostasis effect neutralizes the potential benefits of risk mitigation measures. If the risk homeostasis effect does indeed exist and does impact risk-related behaviors, people will simply elevate risky behaviors in response to feeling less vulnerable due to following security procedures and using protective technologies.Here we discuss, in particular, the challenges we face in confirming the existence and impact of the risk homeostasis effect in information security, especially in an era of ethical research practice

Are risk preferences dynamic? : Within-subject variation in risk-taking as a function of background music

This paper investigates whether preference interactions can explain why risk preferences change over time and across contexts. We conduct an experiment in which subjects accept or reject gambles involving real money gains and losses. We introduce within-subject variation by alternating subjectively liked music and disliked music in the background. We find that favourite music increases risk-taking, and disliked music suppresses risk-taking, compared to a baseline of no music. Several theories in psychology propose mechanisms by which mood affects risktaking, but none of them fully explain our results. The results are, however, consistent with preference complementarities that extend to risk preference

The role of social cognition in decision making

Successful decision making in a social setting depends on our ability to understand the intentions, emotions and beliefs of others. The mirror system allows us to understand other people's motor actions and action intentions. ‘Empathy’ allows us to understand and share emotions and sensations with others. ‘Theory of mind’ allows us to understand more abstract concepts such as beliefs or wishes in others. In all these cases, evidence has accumulated that we use the specific neural networks engaged in processing mental states in ourselves to understand the same mental states in others. However, the magnitude of the brain activity in these shared networks is modulated by contextual appraisal of the situation or the other person. An important feature of decision making in a social setting concerns the interaction of reason and emotion. We consider four domains where such interactions occur: our sense of fairness, altruistic punishment, trust and framing effects. In these cases, social motivations and emotions compete with each other, while higher-level control processes modulate the interactions of these low-level biases

Effect of Frame of Mind on Users’ Deception Detection Attitudes and Behaviours

As the World Wide Web grows, the number and variety of deceptive attacks targeting online consumers likewise increases. Extant research has examined online deception from an information processing perspective, that is, how users process information when they encounter deceptive attacks. However, users’ ability to process information is based on what the users are thinking or their frame of mind while engaged with that information. Frame of mind has not been well studied in the security domain. This study proposes the effect of users’ frame of mind on their attitude towards online deception and their actual deception detection behaviour. Specifically, we propose that human information needs and the framing (positive or negative) of important information such as warnings are significant components of users’ frames of mind that impact their vulnerability to online attacks. We conclude the paper by discussing in detail the experimental setup and expected contributions from the analysis

The Case for Limited Auditor Liability - The Effects of Liability Size on Risk Aversion and Ambiguity Aversion

Both the US and the EU consider limiting auditor liability in order to ensure the viability of the audit market, but fear its potentially negative impact on audit quality. Our paper discusses the existing empirical results on this topic in the auditing and behavioral economics literature, and provides new evidence based on a controlled laboratory experiment. Our experiment involves real losses and allows for direct inference of behaviour under limited and unlimited liability in situations of ambiguous liability risk. Our findings imply that limited liability can induce an efficient level of audit effort, while unlimited liability induces an inefficiently high level of audit effort. This paper contributes to the literature on auditor liability, as well behavioral economics research in general, by addressing recent controversial issues on behavior in the presence of ambiguity and real losses.

Diferencias nas decisões utilitárias e morais entre homens e mulheres

Objective. Moral judgments are based on decisions that take into account the representation of norms and law, values, functionality and situations themselves. Morality has been studied with “hypothetic moral dilemmas”, in order to identify the type of outcome and the process behind moral reasoning. But judgments by themselves are not enough to establish differences in the type of resolution or the relationship with other cognitive processes. The present paper aimed to compare performance in tasks of utility maximization, cognitive control, and moral judgments, taking into account sex and other sociodemographic variables. Method. Seventy-three university students participated (50 women, 20 men and 3 with unreported gender, the average age was 19.53 years (SD = 1.68 years). The Iowa Gambling Task (IGT) was used to identify behaviors of utility maximization. In addition, we used the switch costs and the web application of moral machine tasks. Results. A difference between variables of the IGT, but no differences in the switch costs task were found. Conclusion. Regarding moral judgment, males gave more value to respect norms than females. Some variables of the IGT task support outcomes related to differences between sexes. Results are congruent with differences shown in existing literature.Objetivo. Los juicios morales se basan en decisiones que toman en cuenta la representación de las normas y la ley, los valores, la funcionalidad y la situación en sí. La moral se ha estudiado con "dilemas morales hipotéticos" para identificar el tipo de resultado y el proceso detrás del razonamiento moral. No obstante, los juicios en sí mismos no son suficientes para establecer diferencias en el tipo de resolución o la relación con otros procesos cognitivos. Por lo anterior, el presente estudio buscó comparar el desempeño en tareas de maximización de la utilidad, control cognitivo y juicios morales, teniendo en cuenta el sexo y otras variables sociodemográficas. Método. Participaron 73 estudiantes universitarios (50 mujeres, 20 hombres y 3 con sexo no reportado, la edad promedio fue 19.53 años (DE = 1.68 años). El Iowa Gambling Task (IGT) se utilizó para identificar comportamientos de maximización de la utilidad. Además, el estudio empleó la prueba de cambios de tarea y la aplicación web Máquina Moral. Resultados. Se encontró una diferencia entre las variables de IGT, sin observar diferencias en la prueba de cambios de tarea. Conclusión. En cuanto al juicio moral, los hombres dieron más valor al cumplimiento de normas que las mujeres. Algunas variables de la tarea IGT apoyan las diferencias entre los sexos. Los resultados son congruentes con las diferencias mostradas por la literatura.Escopo. Os juízos morais estão baseados em decisões que levam em conta a representação das normas e a lei, os valores, a funcionalidade e a situação concreta. A moral tem se estudado com “dilemas morais hipotéticos” para identificar o tipo de resultado e o processo detrás do razoamento moral. Mas os juízos em si não são suficientes para estabelecer diferencias no tipo de resolução ou a relação com outros processos cognitivos. Por tanto, o escopo de este estudo foi comparar o desempenho em tarefas de maximização da utilidade, controle cognitivo e juízos morais, levando em conta o sexo e outras variáveis sócio demográficas. Metodologia. Participaram 73 estudantes universitários (50 mulheres, 20 homens e 3 com sexo não reportado, a idade de média foi de19.3 anos, (DE = 1.68 anos). O Iowa Gambling Task (IGT) foi utilizado para identificar comportamentos de maximização da utilidade. Além, o estudo empregou a prova de mudança de tarefa e a aplicação web Máquina Moral. Resultados. Foi achada uma diferencia entre as variáveis de IGT, mas não há diferencias na prova de mudança de tarefa. Em quanto ao juízo moral, os homens deram mais valor ao cumprimento de normas que as mulheres. Algumas variáveis da tarefa IGT apoiam as diferencias entre os sexos. Conclusão. Os resultados são congruentes com as diferencias mostradas na literatura